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This paper proposes an optimal bidding strategy for independent power producers (IPPs) in the deregulated electricity market. The IPPs are assumed to be price takers, whose objectives are to maximize their profits considering price and wind power output uncertainties, while ensuring high wind power utilization. The problem is formulated as a two-stage stochastic price-based unit commitment problem with chance constraints to ensure wind power utilization. In our model, the first stage decision includes unit commitment and quantity of electricity submitted to the day-ahead market. The second stage decision includes generation dispatch, actual usage of wind power, and amount of energy imbalance between the day-ahead and real-time markets. The chance constraint is applied to ensure a certain percentage of wind power utilization so as to comply with renewable energy utilization regulations. Finally, a sample …